China warns United States may face 'fiscal abyss' | Asia Pacific

China warns United States may face 'fiscal abyss'

Relief from the fiscal cliff deal has been pouring off Asian markets all day.

China warns United States may face 'fiscal abyss' (Credit: ABC)

Australian shares had their best one-day gains since late July, and Asian markets bounced to highs they haven't seen in months.

China took a dim view of Washington's achievement. The Xinhua state media agency drily observed that if American politicans can come so close to falling off a cliff, they're unlikely to "reach a deal to help their country climb out of an abyss".

But Patrick Chovanack, a business professor at China's Tsinghua University, believes that the Chinese government should save some of its criticism for its own ability to maintain the stabilising effect China's had on the global economy in recent years.

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